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  1. Suppose I have a best offer on Level 2: 200 shares at $2. If I place a bid for 100 shares at $2, I would expect level 2 to show the best offer to be 100 shares at $2 after my order is filled. But I don't see that happening. What could be the reason?

  2. Sometimes I notice that if I place an order for 100 shares at $2 with best offer for 200 shares at $2, it gets filled at a price lower than $2 - like $1.75. This happens even though the best offer has not changed.

I assume that shorting has something to do with this, but I would like to understand the mechanics.

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    Possibilities: hidden orders, or traders that are much faster than you.
    – Flux
    Commented Mar 4, 2022 at 17:31
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    1) A hidden order hides the true size of an order. They are invisible on Level Two. 2) No idea why you're filled at a lower price
    – Bob Baerker
    Commented Mar 5, 2022 at 1:28

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Regarding question 2:

  • could be your broker is filling it before even transmitting it, because he’s got a matching order inhouse (or in his own interest). There is nothing to complain about as you get a better-than-expected price.
  • could also be someone has a combined limit order, for example “sell 100 and buy a call”, and it ended up giving a better price.
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